2.2b
Bargaining Power of Buyers
The bargaining power of buyers is high. Costs of products can be changed from the buyer’s perspective. For example – the introduction of a new DVD movie has to be times and priced accordingly or drastic losses and changes in pricing can occur. Disney’s customers are demanding and expect the best to bear the Disney name. This drives the quality and price of products depending on demands and uses. The entertainment industry is working to maintain and obtain profits through advertising, the better job the company does, the better job they do in reducing this bargaining power. Also, WalMart is now WDC largest buyer of product – this will show useful in future analysis.